By the end of the First World War the club's membership and finances had been seriously reduced, and it was intimated that the land in Deepdale occupied by the 1903 course would shortly be needed for other purposes and the Club would have to vacate.
At a meeting held at the Price of Wales Hotel in Scarborough on 11th May 1920 under the Chairmanship of a Colonel Land, the following resolution was carried "That The Scarborough Town Golf Club including all its assets be transferred as a going concern to the purchasers of the Scarborough Town Golf and Lawn Tennis Company Ltd. On the understanding that the said purchasers take over and indemnify the present Committee members of the Club against all liabilities of the Club as at 30th April 1920".
A new company, The Scarborough South Cliff Golf Club Ltd, was duly incorporated. The registered office of the Company was at la Carlton Terrace, Scarborough.
There was little local support for the formation of the new Limited Company. Instead considerable financial backing came from a group of Sheffield sportsmen whose prime interest was in golf rather than generating dividends. A majority of the Directors' Meetings and the Annual General Meetings were held at either the Victoria Hotel or the Millsands Works at Sheffield. Golf club committee meetings were held locally (in Scarborough).
After obtaining a lease from Scarborough Council of new land at Wheatcroft Cliff in 1920, the Directors formed a syndicate to provide capital for building a new course 3,500 £1 shares were issued at 10% interest. Directors were not the only people injecting money into the Company; others were invited to take up shares and £1,000, £500 and £250 were typical amounts. A company headed by Dr. MacKenzie of Leeds were appointed as architects, and Messrs Franks and Harris Bros. as contractors. Further shares were issued over the ensuing years, some of which Dr. MacKenzie took. He became a Director in January 1921 and eventually became a member of the Club Committee.
In 1907 Dr. MacKenzie was a founding member and Secretary of Alwoodley Golf Club in Leeds and was involved in designing the course; he was also involved in the construction of Moortown golf course. After World War One he gave up his profession as a medical Doctor to become a full-time golf course architect. By the time he became involved at South Cliff he was 51 years of age and well established as a golf course architect in this Country. In 1926 he designed Royal Melbourne in Australia. He followed that with Cypress Point. Bobby ]ones was impressed with that course and once he had found the ideal piece of land he chose Dr. MacKenzie to join him to design and oversee the construction of one of the most famous golf courses in the world at Augusta.